Profits Annabel Schiff - 27 th October 2014 1 Session Plan 1. - - PowerPoint PPT Presentation
Aligning Customer and Agent Value Propositions to Drive Profits Annabel Schiff - 27 th October 2014 1 Session Plan 1. What is a Value Proposition 2. Defining the Customer Value Proposition 3. Anchor Products 4. Aligning your
1
Annabel Schiff - 27th October 2014
2
3
4
“Will add more value
5
6
Initial Product
Domestic money transfer
Airtime Top-Up
Bill Payment
Salary disbursement
Source: IFC Toolkit, Janine Firpo, Manila, 2009
WING, Cambodia M-PESA, Kenya Banco Bradesco, Brazil M-PAISA, Afghanistan
7
“Send money home” “Pay your Microfinance Loan with M-Paisa. From anywhere at anytime!” “No more need to move to pay your bills”
8
In buzz groups define a suitable product, target market and benefit statement based on the following indicators from Mozambique (One indicator per group): 1. The central and southern provinces are prone to devastating cyclones and floods 2. 45% of the population are under 15 years old, and research shows that they commonly send airtime to each other yet are not aware of mobile money 3. Mozambicans with relatives working in South Africa often receive money from transportadores driving across the South African – Mozambique corridor 4. Saving groups in rural Mozambique can reach highs of up to 700,000 MZN. With no access to banks, they store the cash in their houses or at a local churches 5. Recipients of The Institution Nacional de Assistencia Social (INAS) often complain
6. In rural areas, where 70% of the population reside, there are 1.3 bank branches per 100,000 people. Over half of the 126 districts have no access to a commercial bank 7. Due to increased migration to the urban and coastal areas, there is fear of pollution to coastal waters. Given prawns are one of the highest-valued exported product,
this is a concern to the many fishermen for whom this is their livelihood.
8. 52% of the population live below the poverty line, however even at the bottom of the pyramid informal saving and borrowing is high demand.
Time: 15 minutes
9
10
11
Clients relate to agents as the visible face
and image of the provider.
Clients associate trustworthiness in the service with trustworthiness of the agent. Usually the primary relationship is between agent and customer and that drives the client decision to continue/discontinue using services of a provider. The capability of the agent will determine scalability and client adoption. The right agent is crucial for ensuring appropriate standards
service delivery including liquidity.
12
13
An attractive value-proposition to agents is required when launching.
and see the business potential
14
7 16 17 23 63 69 73 28 39 41 51 69 27 67 12 30 24 37 32 54 54 20 40 60 80 Wanted store signs &/or new paint(non-dedicated) Because all the businesses are doing it Prestige Associated with it My Customers kept asking for the service(non- dedicated) Increased cross- sales (non-dedicated) I am a entrepreneur, and wanted my own business Increase existing store profits from commissions(non- dedicated)
% of Agents that Answered Why They Became Agents
Tanzania Uganda Kenya
Increasing store profits, cross-sales and entrepreneurial desire are the main reasons for beginning agent activity.
EAST AFRICA
15
In early stages when transaction levels are low, agents must be incentivized through bonuses such as higher commission on customer enrollment
16 200 400 600 800 1000 1200 March-07 May-07 Jul-07 Sep-07 Nov-07 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Ratio Customers to Agent M-PESA Customers to Agent Ratio June 2008 just over 3,000 agent and a little
customers
17
In buzz groups discuss what demographic of agent will be most suitable to deliver the value proposition you defined in the previous exercise. What special characteristics or systems must they have in place? 1. The central and southern provinces are prone to devastating cyclones and floods 2. 45% of the population are under 15 years old, and research shows that they commonly send airtime to each other yet are not aware of mobile money 3. Mozambicans with relatives working in South Africa often receive money from transportadores driving across the South African – Mozambique corridor 4. Saving groups in rural Mozambique can reach highs of up to 700,000 MZN. With no access to banks, they store the cash in their houses or at a local churches 5. Recipients of The Institution Nacional de Assistencia Social (INAS) often complain
6. In rural areas, where 70% of the population reside, there are 1.3 bank branches per 100,000 people. Over half of the 126 districts have no access to a commercial bank 7. Due to increased migration to the urban and coastal areas, there is fear of pollution to coastal waters. Given prawns are one of the highest-valued exported product, this is a concern to the many fishermen for whom this is their livelihood. 8. 52% of the population live below the poverty line, however even at the bottom of the pyramid informal saving and borrowing is high demand.
18
Unaware Awareness Understanding Knowledge Trial Regular Use
Neil Davidson and M. Yasmina McCarty, “Driving Customer Usage of Mobile Money for the Unbanked”, GSMA
ATL, Above The Line, is all glamour. It's about reaching
that creates or reinforces brand communications. But there's no direct consumer involvement.
BTL, Below The Line, is a more down-to-earth, hands-on approach that is more direct and establishes a relationship of the brand with individual consumers.
19
Unaware Awareness Understanding Knowledge Trial Regular Use
Above-the-Line
Below-the-Line
DFS?
does it offer?
use DFS?
benefits?
does it resolve for me?
information about DFS?
call?
use the product?
get registered?
formalities to complete to register?
steps to do a transaction?
check my balance?
charges for each transaction?
to reset?
have cash, what should I do?
services I can use?
this service (other agents/ merchants)?
pricing
20
In buzz groups, discuss suitable BTL activities to promote your value proposition: 1. The central and southern provinces are prone to devastating cyclones and floods 2. 45% of the population are under 15 years old, and research shows that they commonly send airtime to each other yet are not aware of mobile money 3. Mozambicans with relatives working in South Africa often receive money from transportadores driving across the South African – Mozambique corridor 4. Saving groups in rural Mozambique can reach highs of up to 700,000 MZN. With no access to banks, they store the cash in their houses or at a local churches 5. Recipients of The Institution Nacional de Assistencia Social (INAS) often complain of the money spent on travelling to receive their pensions and food aid 6. In rural areas, where 70% of the population reside, there are 1.3 bank branches per 100,000 people. Over half of the 126 districts have no access to a commercial bank 7. Due to increased migration to the urban and coastal areas, there is fear of pollution to coastal waters. Given prawns are one of the highest-valued exported product, this is a concern to the many fishermen for whom this is their livelihood. 8. 52% of the population live below the poverty line, however even at the bottom of the pyramid informal saving and borrowing is high demand.
21